Kalistani Major History

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Republican National Shipyards Proceeds at full Steam
KALNAFERCO (KFO) stock hits 10 year high in Kalsie
Kaliburg, Ananto
August 5368


Republican National goes into overtime to fill Lodamese Contract

Republican National Shipyards is nearing completion of the first of five container ships to fill an order from the Harrington Company in Lodamun. Since Lodamun joined AESA, Republican economic planners have noticed increased trade volume back and forth across the border. "Most of the volume comes in overland trade, specifically by road into and out of the Addisjah port of entry," said trade minister spokesman Alfred West. "However, we have also noted an uptick in the rail traffic, as trains are cleared through to their destinations once in Lodamun on Lodamese rails, increasing efficiency and cutting cost. New ships will facilitate increased sea transit as well of both consumer and durable goods to and from The Republic." To underscore the increase, West said than in the past year, imports and exports have increased on average of 6.2 percent monthly. "We're essentially seeing a stable trade balance, but volume has greatly increased as new goods and services are offered to Kalistani citizens." Main imports are consumer electronics, different food stuffs and textiles, while the Republic has seen increased export of durable goods like machine parts, petrochemicals, and automobile parts. "People in Kalistan like foreign things," said West.

The construction of the new container and LNG ships at The Republican National Shipyards will fulfill the orders made by Harrington of Lodamun and follow on the heels of Merchant General David Teller's successful 5362 visit that began Lodamun's entry into AESA and improving trade relations with Kalistan. The contract, worth about K1.5Bn in Kalistan was awarded at a 35% markdown, bringing the entire cost down to 975 Million Rubles: The Kalistani Government explained that it would treat Harrington, which is a public/private partnership associated with the Lodamese Government, as a "nationalized company" and would sell products to Harrington "at cost", when Kalistani Nationalized industries are involved in the production. "Republican National Shipyards is not in the business of earning profit," said West, when offering comment on the deal, "Especially when it comes to members of the AESA". Lodamun has guaranteed credits and cash payments of half the total cost up front with the remaining 50 percent paid on delivery. The entire project is expected to take four years total to complete, with the first super-container ship nearing completion in six months.

Despite the discount, the confirmation of the deal sent KFO stock soraing in the Kalsie. "Investors are excited about KalNaFerCo's part in this deal," said West. "KFO has been operating at a low level out of the Sulari Cold Works for a long time, and this deal not only means more jobs, but also a flush of cash which the Nationalized Steel Company was not expecting." KFO also confirmed that the ships produced at the Shipyards will be the carbon fiber reinforced steel that Kalistani Naval vessels are made with. "It's less expensive, requires less iron, is lighter weight, and more durable than your standard steel hulls," said West. The forecastle will be produced out of aluminum-steel alloy, which is also supplied by KFO. "Cost saving measures, including nationalization of the entire process from extraction to personnel ensures that we can afford to bring each ship in under the average K262Mn pricetag we see on containerships of this size." The price savings further bolstered KFO in the Kalsie.

"It would be our dream to see Kalistan move to the front of the civilian ship building industry," said West. "As it is, there are a lot of other players, and the discounts we can afford to extend to Lodamun cannot be made universal. But these obstacles are not entirely insurmountable, and the savings of oceanic transport can help offset some of the cost of the infrastructural construction even for nations not tied to the AESO. On one of these ships, we can carry cargo enough to replace a 38 mile long double stacked train. There are larger ships in existence for certain, but Kalistan can produce them faster, cheaper, and make more durable vessels than the best ship makers. It makes sense that Lodamun would come to Kalistan, and it reinforces our new and improving relationship."

The LNG ships being provided by Republican Ship Yards will serve Lodamun in its deal with Lourenne for oil and petroleum products. The Republic intends to continue pushing for completion of the double track rail link over the Jah River and will renew efforts to work with Lodamun to build a new refinery in Lodamun to both increase world refinery capacity (and reduce world petroleum prices) and to help cut refining and petrochemical production in Kalistan. "A new refinery in Lodamun will be an excellent cost savaing measure for Lodamun and a good environmental measure for Kalistan," said West. "It would be preferable to the Kalistani Government that Lodamun begin its own refining operations to process KPO crude rather than sourcing petrochemicals, which the Republic would like to cut back on, from Kalistan. We can do that with the building of a new Lodamese refinery: We are not going to unilaterally cut refining in Kalistan without increasing the capacity elsewhere." Talks are ongoing on these two issues. KPO experienced slight gains in the Kalsie, as the LNG shipping contract was offset by seeming Kalistani opposition to continued expanded refinery operations in the Republic, finishing up .6 percent for the day compared to a 12.2% gain for KFO.